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TMI Blog2018 (12) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... INDIA] and Mangayarkarasi Mills (P) Ltd [2009 (7) TMI 17 - SUPREME COURT] remanded the matter to the Commissioner of Income Tax (Appeals) [for short, the CIT (A)] to decide the issue as to whether the expenditure, in effect, could be treated as revenue expenditure. In the light of the legal position as enunciated above we are of the considered view that the matter has to be remanded for fresh consideration. - Tax Case Appeal No.260 of 2009 - - - Dated:- 20-11-2018 - Mr.Justice T.S. Sivagnanam And Mr.Justice N.Sathish Kumar For the Appellant : Mr.T.R.Senthil Kumar For the Respondent : Mr.R.Sivaraman JUDGMENT T.S.SIVAGNANAM, J. This appeal by the Revenue filed under Section 260A of the Income Tax Act, 1961 is d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of Casablanca Conversion System in its plant. The I.T.O disallowed the claim of the assssee. The Appellate Authority agreed with I.T.O. Before the Tribunal, the assessee contended that the amount expended for introducing Casablanca Conversion System was current expenditure under Section 10(2)(v) of the Indian Tax Act, 1922 (Section 31(i) of the 1961 Act). The Tribunal inspected the spinning factory of the assessee. It studied the working of the machinery with the Casablanca Conversion System. It also studied the literature published by the manufacturer of Casablanca Conversion System. After a detailed study, the Tribunal held that on account of the stress and strain of production over a long period there was a need for change and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me within the expression current repairs . That is not the case before us, hence, the said judgement has no application to the facts of the present case. Moreover, the judgement of this Court in Mahalakshmi Textile Mills (supra) has not defined the word asset to mean the entire production system in the textile mill. In the said judgement, it is nowhere stated that the entire textile mill is one single asset and that it represents one single integrated process. 5. The decision in the case of Saravana Spinning Mills Private Limited was relied on by the Hon'ble Supreme Court in the case of CIT, Madurai Vs. Mangayarkarasi Mills (P) Ltd. [reported in (2009) 315 ITR 114] wherein it has been held as follows: 14. The first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s framed in this appeal and after taking note of the decisions of the Hon'ble Supreme Court in the case of Saravana Spinning Mills Pvt. Ltd., and Mangayarkarasi Mills (P) Ltd., remanded the matter to the Commissioner of Income Tax (Appeals) [for short, the CIT (A)] to decide the issue as to whether the expenditure, in effect, could be treated as revenue expenditure. 7. In the light of the legal position as enunciated by the Hon'ble Supreme Court in Saravana Spinning Mills Pvt. Ltd., and Mangayarkarasi Mills (P) Limited, we are of the considered view that the matter has to be remanded for fresh consideration. Though in the case of Super Spinning Mills Ltd., the Division Bench thought fit to remand the matter to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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